UK Coal says it is to consider a takeover bid which targets its £260.3m property portfolio.
The bid, from John Moulton’s private equity group Alchemy Partners, Sir Tom Farmer and the Duke of Buccleuch, follows the April decision by the UK’s biggest coal producer to rebuff a tentative break-up bid from the trio.
Last month David Peck, managing director of Buccleuch Property, told EG that the consortium wished to re-establish “ongoing dialogue” and UK Coal confirmed today that it had agreed to meet with the bid team.
In a statement it said: “Clarification has now been received on some of the issues raised and, whilst in the view of the company the proposal remains highly preliminary and tentative, UK Coal has now agreed to meet with members of the Consortium (being Alchemy Partners LLP, Morston Assets Limited and the Buccleuch Group).
"There can be no certainty that an offer will be made and, if made, there can be no certainty as to the terms of any such offer.
"A further announcement will be made as appropriate."
The announcement came as UK Coal revealed a revaluation of its property holdings undertaken by Fuller Peiser in its interims.
The group said that overall the revaluation showed an increase of £58.3m, representing an excess over book value of £189.1m.
It said the gross valuation of its property portfolio (excluding investment properties) has increased by 29% to £260.3m, (31 December 2004: £201.9 million).
It posted an overall loss after tax of £30.6m (2004: £1.4m) driven by a £44.m loss from deep mines.
Its property activities produced a profit of £10.4m (2004: £2.4m).
References: EGi News 07/09/05
